digibyte - Oracle wins NetSuite on its own terms

Stuart Lauchlan Profile picture for user slauchlan November 4, 2016
Summary:
Oracle secures enough shares to complete acquisition of NetSuite - and at its own price, not that demanded by T. Rowe Price.

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It went down to the wire, but in the end Oracle has managed to secure its acquisition of NetSuite.

As the deadline closed yesterday, Oracle had secured approximately 21,775,553 unaffiliated shares, or 53.21% of the total unaffiliated shares, and 62,330,605 total Shares, or 76.39% of the total shares issued and outstanding. Oracle confirmed:

A majority of the unaffiliated shares of NetSuite Inc. (NYSE: N) were validly tendered and the other conditions to the tender offer have been satisfied. The acquisition of NetSuite will be consummated by Oracle on Monday, November 7, 2016.

It's a victory for Oracle CEO Mark Hurd who had declared that the firm's bid price of $9.3 billion - or $109 per share - was its full and final offer, despite a push from NetSuite's largest institutional investor T. Rowe Price to secure $133 per share. Hurd had stated that Oracle was ready to walk away from the deal if necessary.

Attention will now turn to what happens next and a raft of as yet unanswered questions, such as will the NetSuite brand live on or will the firm be absorbed into Oracle's cloud operation? And what will the future roles be for key NetSuite senior management figures, most notably CEO Zach Nelson and CTO and founder Evan Goldberg?

Nelson is due to speak at the Web Summit in Portugal next week. Meanwhile, we can expect more detail on Monday once the consummation takes place. More on this to come.

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